2. 1.0
Speed without
direction is the
fastest way to
getting nowhere.
On your marks, get set, hold on…
If you’re reading this, that means we’re interested in taking the next step
towards making your venture a success story. But before we decide to move in
together, exchange vows, and live happily ever after, we’ve still got work to do.
The process of raising capital in the private equity market can often be
misunderstood. So to help familiarize you with our process, and what the next
steps are, we first want you to to understand a bit more about how Angel
groups work.
Sorry if this is redundant, but you’d be shocked by how many times we’ve
had to explain this.
3. We’re Actually On The Same Team.
Like most Angel investment groups we do not manage a fund. We provide our
investor members with a service, which at the most basic level, is a filter for
sifting through thousands of investment opportunities.
Contrary to popular belief, we don’t just write checks like a VC. We (the group
managers) usually have to work twice as hard to get all the parties around the
table excited to work together. This means that we are in this together. We are
both going to work towards the same goal; getting your venture funded.
2.0
Investors expect us to make it easy for
them to make an informed and intelligent
investment decision. It’s our job to make
investing more educated, empowering,
and rewarding.
Is our job easy? Hardly. Managing a group of successful, critically-thinking
high net worth investors is no walk in the park. To wage this war we’ve armed
ourselves with the best possible processes and tools to enable us to be highly
effective at getting your venture funded as quickly as possible.
To get under the hood and really understand why we do what we do, it usually
helps for entrepreneurs to see the world from the other side of the table.
4. Psst. Investors Don’t Read Business Plans.
Most Angel groups are buried in submissions from entrepreneurs who have
“remarkable products, stellar financials, and a world-class management team”.
Or at least that is what their business plan would say if they actually had the
chance to read it…
3.0
The truth is most investors simply can’t
take the time to read thousands of
business plans. So how can they
possibly find, filter, and fund the most
promising new venture investments in
an ocean of possibilities?
Do the math: Right now there are over 37,000 business plans on AngelSoft.
There are over 100,000 plans on FundingPost. There are over 6,000 plans on
Funding Universe. If an Angel investor tried to review all these plans for 30
minutes each it would take over 33 years reading 8 hours a day, 5 days a
week, for 52 weeks a year.
Bottom line: Blasting your business plan out to several hundred Angel groups
with the click of a button is about as strategic as buying a Powerball ticket.
This is clearly a problem for investors AND for entrepreneurs.
5. It’s Time To Break Free From The Broken.
Before the internet, entire industries emerged that helped investors find “good”
entrepreneurs; trade shows, print publications, and an army of investment
banking connectors who helped introduce entrepreneurs to investors (for a
large fee of course). You can spend half your career (and life savings) at trade
shows and more often than not all you would have to show for it would be a
desk drawer full of name badges.
4.0
Today’s investors rely more than ever on
their filter of trusted referrals and
connections with friends. Tip: trust is
not earned swapping cards at a trade
show booth.
This traditional process needed to evolve, not because it wasn’t an effective
method for discovering a high number of venture investments, but because
investors needed an easier way to reduce their number of investment options
down to a more manageable and quality figure.
So we asked the question, “what if there was a way for investors to discover
investment opportunities based up on the strength of the venture, rather than
the reach of their personal network?”
6. There Is A Smarter Way To Find Capital.
While we have to admit there is an intoxicating rush from pitching your
innovative venture in front of an audience, the end result usually feels more like
a hangover. Investors with more questions than answers, and entrepreneurs
leaving wondering if their choice of wardrobe sealed the fate of their company.
5.0
True understanding of a venture, the
management team, and the target market
doesn’t happen during a 15 minute pitch
in a hotel ballroom. The speed pitch of
the 1990s provides no value for anyone
in the room, except maybe the caterer.
We know, because we’ve walked in your same shoes.
That’s why we’ve spent the last two years developing a more future-forward
approach to business building; a disciplined and proprietary methodology for
scoring, evaluating and selecting new venture investments. Utilizing a combined
human and database-driven due diligence process, North scores ventures across
80 categories providing finely tuned analysis and insight across all critical aspects
of each new venture.
7. Say Hello To The Venture 360 Report.
By providing detailed and objective analysis, and then sharing the results with
both the entrepreneur and the investor, we’re able to achieve a unique result:
crystal clear direction for everyone involved.
6.0
From deconstructing the financials to
target market analysis; the strengths
and weaknesses of each venture
opportunity are reviewed in detail so
investors and entrepreneurs can make
confident decisions based on reliable
data, not just intuition.
20+ Pages of Rigorous Insights & Scoring Comparative Graphing & Performance Chart &
Due Diligence Across 8 Categories Written Analysis Executive Summary
8. A Long Hard Look Pays Off For Everyone.
Ultimately investors and entrepreneurs are betting on the same thing: the
success of the business. A three year study of 539 Angel led investments
conducted by the Kauffman Foundation found an extraordinary insight.
7.0
“Comparing investors who spent less
than the median 20 hours of due
diligence and investors who spent
more, shows an overall multiple
difference of 5.9X for those with high
due diligence compared to only 1.1X
for those with low due diligence.”
Excerpt taken from “Returns to Angel Investors in Groups”, a comprehensive study of 539
Angel led investments. Robert Wiltbank, Ph.D. and Warren Boeker, Ph. D., 11/2007.
Whether you’re an entrepreneur betting your career, or an investor betting your
capital on an exciting new venture, what type of return on investment are you
seeking? 590% or 110%?
If a venture doesn’t succeed nobody wins, so it’s in all of our best interest to
stress test the business well before we make the relationship “official”.
9. Pointing You On The Right Path to Funding.
North’s objective analysis and contextual scoring of thousands of new ventures
is the foundation of our Angel groups decision process. It’s what makes us
different. It’s what makes us better. It’s our secret 11 herbs & spices. But the
Report is only the first step, the next step is getting it in the hands of investors.
8.0
Each month the top scoring reports are
published and promoted to the full North
Angels membership which consists of
individual investors, other Angel groups,
and institutional investors.
Note: You might not like what the report has to say, but
you should realize that neither investors, entrepreneurs,
or North are well served by spending weeks, or months
trying to move a venture forward if it is fundamentally
flawed.
Our third party analysis and report marketing can either
accelerate your conversations with investors, or it can
give you the direct and honest feedback you need to dig
in and re-tool your business to put it on the right path to
success.
10. Taking The Mystery Out Of Venture Marketing.
The high cost of professionals who market ventures to investors can be
downright frightening, and with nearly no visibility into the process it can mean
a giant leap of faith for entrepreneurs. And nobody likes buying on faith alone.
9.0
Save the trust falls for management
retreats. North’s Investor Interaction
Report shines light into the dark corners
of investment marketing; giving you
confidence & clarity by sharing exactly
what is happening with your Venture 360
Report, right down to every little click.
Published Venture 360 Reports have embedded code
that tracks each and every investor interaction. North
provides accountability to the entrepreneur by tracking
everything, right down to the number of seconds an
investor spends reading each page of the report.
Don’t throw darts in the dark. Before you invest your time
or money in marketing your venture to investors, first
make sure you’re able to see the results of your efforts.
11. Even The Best Benefit From A Second Shot.
We truly believe that success comes through hard work and persistence. That’s why
North offers entrepreneurs a second chance to make a favorable, first impression.
10.0
Michael Jordan was once cut from his
high school basketball team. Sometimes
setbacks prepare us to reach even
greater heights. We all know where His
Airness ended up. Do you know how
you will respond to the challenges that
your business will face?
Each recipient of a completed Venture 360 Report has the option to wait 90 days
and then re-submit their business for a full Venture 360 Report at no additional cost.
While not every venture will need it, this “second shot” enables an entrepreneur to
apply the insights garnered from their first report, as well as include other
improvements to their business, to make an Angel investment more conceivable.
Second chances are rare in life. They’re even more uncommon in the board room.
Because we feel so strongly that the process for seeking investment capital needs to
be more holistic, we give entrepreneurs the option to use what we offer to strengthen
their venture and increase their odds of starring in their own comeback story.
12. Time To Put Some Skin In The Game.
By now you should hopefully understand what it takes to get through this
process. It requires commitment, perseverance, and above all, takes faith in
your abilities and the strength of your idea. Nothing worthwhile is ever easy.
11.0
We think of the Venture 360 Report as
the best possible way to introduce your
innovative venture to investors. For
North Angels, this is the only way.
The Two Phase Process For Going North:
Phase I - Completing a Venture 360 Report (Roughly 5-10 business days)
1. Document Review & Target Market Analysis
2. Financials Deconstructed & Sensitivity Testing
3. Management Team Interview & Q & A Session
4. Reference Checking & Lexis Nexis® Background Reporting
5. Internal Draft 1.0 Report Review & Final Partner Revisions
Phase II - Report Distribution & Investment Marketing (Roughly 4-6 weeks)
1. Final Report Distributed to Angel Investors (Investor Interaction Report)
2. Angel Group Member Capital Call & Additional Due Diligence
3. Finalize Financing Agreements & Complete Funding Transaction
13. Chances Are We’ve Got You Covered.
While our roster is deep, we can’t provide reports on everything under the sun.
If a venture falls outside of our coverage areas of expertise, we’ll probably have
to wave the white flag and refer you to a subject matter expert.
12.0
North executes reports across 8 market
sectors enabling us to cover 85% of all
submissions. Marketing these reports to
a large & diverse group of Angels forms
our foundation for fostering innovation.
For each industry there are various
North Market Coverage
economic models, industry standards, and
consumer behaviors. Each of these unique
Media & Entertainment
factors is incorporated into the venture
Consumer Products & Services evaluation. The strength and accuracy of
the North database of reviewed ventures is
Software & IT Services
enhanced by our market segmentation.
Mobile Devices & Applications
Note: The overall scoring and analysis
output is calibrated to seek the greatest
Business Products & Services
possible economic return regardless of
market sector.
Retail / Distribution
Sustainable Industries / Energy
14. Ready to Head In The Right Direction?
We invest significantly in the ventures we team up with, and the last thing we
ever want is a partnership of inequality.
13.0
We believe our time and effort must be
something you value enough to invest in
moving our partnership forward.
Reports are scheduled on a first come first served basis. All fees are billed in
advance of the project kickoff. The non-refundable report fee covers:
• Phase I and II of the North Venture 360 Report Process
• All North Analyst and Partner Expenses & Fees
• All Third Party Fees (Lexis Nexis Background Report)
• Report Publishing, Printing, & Marketing Expenses
• Investor Interaction Tracking Reports
• North Reference Calls With Investor Candidates.
To engage with North and take the next step forward, send an email to
northventure360@dontgosouth.com stating that you’re ready to rock.
Read more about what we do at: Northern California Southern California
www.dontgosouth.com 1729 Telegraph Ave 4316 Melrose Ave.
Oakland, CA 94612 Los Angeles, CA 90029
